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GBP/USD is trading at $1.5615, up 0.3% on the day. Traders bought the pound on the back of the UK services purchasing managers index (PMI), which came in at 60.5 in August. This is the highest reading in over six years. It comes a day after the UK revealed a strong construction PMI report, and two days after the manufacturing PMI report exceeded analysts’ estimates. These figures are starting to paint a picture suggesting the British economy is gaining momentum.
The Beige Book, essentially a round-up of the US economy, is released at 7pm (London time) and may give an indication of the labour market's strength. The current rate of unemployment in the US is 7.4%, and the US Federal Reserve has stated it will taper the stimulus package once this figure drops. We will have to wait until Friday for the latest US unemployment data to be released, but tonight’s Beige Book may give us a clue as to what can be expected.